The CFPB has officially withdrawn a proposed rule that would have eliminated the requirement for state officials to notify the Bureau when taking enforcement actions under the Consumer Financial Protection Act.
The CFPB had published the proposed rescission as a “direct final rule” on May 21, 2025, signaling its intent to end the state notification procedure unless significant opposition emerged. That opposition arrived before the June 20 deadline.
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“Because significant adverse comments were received, the Bureau is withdrawing the direct final rule,” the agency stated in its notice, which will be published in the Federal Register on July 21.
The notification rule, established under 12 CFR Part 1082, requires state officials to inform the CFPB when initiating enforcement action related to federal consumer protection laws. Critics of the rescission argued that eliminating the rule could hinder federal-state coordination and undermine transparency.
The Bureau emphasized that the withdrawal does not constitute a significant regulatory action under Executive Order 12866 and does not introduce new policy. Instead, the CFPB will address the comments received through a future formal rulemaking process.
For now, the notification procedures remain in place, preserving the existing framework for state-federal cooperation in consumer protection enforcement.
The action was authorized by CFPB Acting Director Russell Vought.
This development may reflect growing scrutiny of regulatory rollbacks currently happening in the first six months of the Trump administration.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
